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Ash, Solicitor

Category: Property Law

Satisfied Customers: 10916

Experience: Solicitor with 5+ years experience

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What is the time given to owner to sell the first home before

Customer Question

What is the time given to owner to sell the first home before paying capital gain tax should one possess two homes at one point ( unable to sell property quickly as had to move to another city for work)

Alex Watts :Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.

Alex Watts :When is it being sold please?

JACUSTOMER-npylfqwt- :I had to move to a new city for work purpose in dec, 2011, rented till August 6, 2012 and bought a property in August 2012 but could not sell the first home(property) due to various reasons. Now have sold the first property, do I have to pay cgt

Alex Watts :

You need to declare it in the tax year it happened.

Alex Watts :

You have to use the home for 3 years for it to become your place of residence.

Alex Watts :

Less than that then you pay capital gains tax pro rata to the time it was

Alex Watts :

Therefore if it was your primary home for 1 year, you have to pay 2/3rds capital gains tax

Alex Watts :

Can I clarify anything for you about this today please?

JACUSTOMER-npylfqwt- :What is private residence relief? I have lived in the first home till 29 th of December 2011, rented a house closer to my wife's place of work till August 2012 then bought the second home. I have been letting the first with the intention of selling within 3 years. By the way we jointly own the house.

JACUSTOMER-npylfqwt- :What is private residence relief? I have lived in the first home till 29 th of December 2011, rented a house closer to my wife's place of work till August 2012 then bought the second home. I have been letting the first with the intention of selling within 3 years. By the way we jointly own the house. We bought the house in sept 2000 by the way. I have to clarify I am talking about cat relating my first home that we jointly bought in 2000. Out of 13 years 8 months we lived in the first home nearly 11 years and 4 months. Do we not qualify for nearly 13 years of private residence relief plus letting relief ?

JACUSTOMER-npylfqwt- :Please can you explain how to calculate private residence relief and do we qualify for this or not. We are now living in the home that we bought 1 year and 9 months back. Hope I have explained it clearly. Appreciate your comment.

Alex Watts :Here are the full details of what it is and how to work it out

Alex Watts :http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

Alex Watts :Can I clarify anything else?

JACUSTOMER-npylfqwt- :

thanks, I have visited this page many a times but wanted a clarification in layman's term. from what I understand is I should qualify for 11 years and 9 months of PRR is it true. Showing the hmrc web is not what I was expecting from my subscription really.

Alex Watts :The value related to your question is less than £5 so time spent working on it by an expert is limited.

Alex Watts :It shows as low detail and low urgency.

Alex Watts :In short you get 1/36 relief for every month in your home

Alex Watts :So you should just be able to work out how long as been spent as a home, how long has been used to rent and that is how you work out relief.

Alex Watts :Does that clarify?

Alex Watts :

If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.

Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.

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